Majestic Tech by an Enlightened Wealth Institute student

The typical mentality in home buying is that the first home he buys should be his dream home and that is where he is going to stay until the day he dies. If you are looking for the key to money-wise home ownership for the coming decade, keep this rule in mind: When you buy, make sure you buy with an eye to resell, sooner rather than later. This means that if you are a smart consumer, you’ll look at any house you’re buying with a view to its resale-ability at maximum gain, probably within the next five to seven years. Even if you don’t sell within the average time frame, you will find this buy-to-sell perspective will bring you sounder real estate investments.

Simply explained, the first home you buy does not necessarily have to be your dream home. You can use this first purchase as a stepping stone to eventually buying your dream castle. The important thing is for you to make that first step into property ownership. Buy with the intention of selling later, and then buy again a much bigger one, until you reach your dream.

Here are some good reasons why real estate investing could add leverage to your investment:

1.    HEDGE AGAINST INFLATION - Adding real estate in your investment portfolio can protect it against the ravages of inflation.  The value of a real property increases as inflation rises.
2.    RESIDUAL VALUE - Real estate always has residual value.  Although prices can certainly fall as well as rise, property values will never fall to zero unlike all shares or hedge funds.
3.    HYBRID ASSET - Property is a kind of hybrid asset that has a capital appreciation of a stock and income producing capacity of a bond.
4.    EXCELLENT COLLATERAL - Real estate in prime locations is always an excellent collateral security against loans, and allows financing to be secured anytime
5.    PRE-DEVELOPMENT APPRECIATION - Units in project that are being sold in pre-development phase generally appreciate in value when the project is finished.
6.    EASY TO RENT OUT -  Units in project that are near in malls, schools and other high traffic areas are easy to rent out.
7.    APPRECIATES AT AN AVERAGE OF 10% PER YEAR - Philippine property appreciates at an average of 10% per year, which is higher than 3% to 6% appreciation of U.S. properties.  This translates to a higher Return of Investments (ROI).

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